Hi, welcome to DNB Carnegie and the conference call with Terranor. My name is Markus Almerud. I am an analyst here at the bank. I have with me Michael Berglin and Inka Kontturi, who is CEO and CFO at Terranor. I will hand over to you, and you will present the Q2, and I will come back with some Q&A afterwards. Over to you. Excellent. Thank you for having us, Markus. Thank you everybody out there who is listening in to this call. Like Markus said, we will be doing the presentation for our second interim report of 2026. Me and Inka, we will do it as always together. Markus will follow up with any questions afterwards. Without further ado, me and Inka, just said. I saw Markus' initial analysis of the quarter, and he said it was a strong quarter. From the company side, we totally support that. We had a capital market day in May, where we presented new targets up until 2025. I think what we are experiencing in this quarter, as well as in the first quarter, is a very strong support for those numbers. We are on the right trajectory. We are growing. As some of you might remember, we have a target of 8% organic growth. We are at 23%, so of course, well above. We have always said that we will never trade growth for profitability. In my opinion, I think this quarter was really solid and strong as the increase quarter-to-quarter, we are clearly increasing profitability. Order backlog, of course, we are working with long-term contracts. State and municipality is close to 90% of where we generate our revenues. Working with long-term contracts also builds up the confidence for us to reassure you that the target of SEK 5 billion in 2028 is a target that we feel very confident with. Of course, I will come back, and we will brush up on the different segments. Just to set the stage very early on, I think what is driving this growth and also what is driving the increased profitability. First of all, the market. We are experiencing, across the board, higher demands for our services. I will give you some more flavor on how we read the market. But definitely, market drivers are imminent. We see them across the board. Secondly, you heard us talk about Terranor being the only specialized company in the Nordics doing this. I also think that the combination of market demands and our ability to absorb those demands, being specialized, being the only company that is 100% focused on delivering services towards this market. I think those two, and of course, goes without saying, we wouldn't be able to do this without having colleagues that, on a daily basis, build the partnership with our clients that also enables us to be a trustworthy partner towards our state and municipality, but also local market clients. I think those three market drivers, our specialized position, and also the colleagues having the entrepreneurial drive of also being able and willing to do a lot of things. Moving further, talking about the market. Market drivers, for one, of course, Sweden being the lion part here. Definitely when it comes to Sweden, I would point, again, towards the underspending that has been for decades. That deficit that has been built up, we see now a clear demand where we have passed a point where you cannot simply patch up the roads or the adjacent things of the road anymore. We see a political unanimous decision to put more funds into this. Most important, not only the decisions, not only the funds, but we see the funds being put to use on the roads. I think heavier trucks moving on the roads, the necessity of having open roads and safe roads, what it brings to society, what it means when it doesn't function. I think all of that together builds up a huge demand. It is something that we do not anticipate to decrease in the short term. Rather, it will increase. Again, it is all about building Terranor to be the trustworthy partner that also have the knowledge and are driving innovation on how to do this more efficient, but ultimately having the colleagues out in the fields that also are willing and able to do the work. I think it is a mix of market demands and our ability that is driving our growth right now. Seasonality is always something we come back to, but I think I am going to leave this to you, Inka. But before, I am just going to say that looking at revenues, quarter one heavily affected because we had winter. Now coming over to quarter two, the way we operate, a lot of the things we need to support the road structure, all of the actions, activities that goes towards making the roads safer, all of that will happen in quarter two, quarter three. Yeah, I think this is a typical quarter for us. But please, Inka, enlighten us. Thank you. This is a bit more of the educational slide in our slide set. Our business, it follows the clear seasonal pattern. The operational year spans over roughly five quarters. We have the winter season, then we have the summer season. During the winter season, we use more on a fixed pricing to mitigate the risk, but there is a limited opportunities for the margin expansion during the summer season. Like Michael said, we use more variable pricing, there will be more extra works and therefore better margin opportunities. Towards the year end, where we can see towards the fourth quarter, we will close all the extra works, and then we can see the margin improving quite a lot. This has an effect also to the cash flow. When we are invoicing the variable and the extra jobs after those are completed, it has an effect to the cash flow. Here we can see in the historical numbers that the majority of the cash is generated only in one single quarter. We continued the growth. Growth was 23% for the second quarter. This is actually exactly the same number than in the first quarter. So we are well above our medium-term target of 8%. Revenue for the second quarter was a bit over SEK 1 billion. Growth driver here is segment Sweden with a good start of the summer season. Good order intake, that secures the record high order backlog on SEK 7.3 billion. This is a solid platform going forward. The 23%, like Michael said, it's not only weather driven. Our market share is growing, there is high activity level, and we can see that the clients are investing more on the roads. Maybe also, Inka, one would say that from a weather perspective, everybody is asking, you are, of course, affected by weather. This year we had a strong winter. Yeah. We had winter, but it came to a stop very fast. We were able to start all of the summer works early, plan it early in March. Coming out into quarter two with a really strong start of doing all of the summer work, and in combination with higher demands and higher needs from our clients. Yet again, the ability of doing all of that work. If I were to hint something about 2026, I would definitely say that what we have said earlier on. Meeting the target of SEK 4 billion revenues this year, SEK 4.5 billion, SEK 4.7 billion, and ultimately, SEK 5 billion, we are on that trajectory. If something, we do not see this increase slowing down. Yeah, on a good track, I would say. Yeah. Absolutely. Please. Yeah. The earnings, they remained quite stable. What we saw with the top line that the first quarter and the second quarter was the same improvement. We can see the same with the earnings. Adjusted EBITDA on a SEK 27 million level. This is 61% up from the last quarter, 2025. And adjusted EBITDA margin being 2.6%, this is 0.6% up. Again, drivers here, strong performance in the road maintenance and operations in Sweden, supported by Denmark. The second quarter margin at the 2.6%, this is in line with the seasonal pattern. Here we can see that the first quarter and the first half of the year has historically carried lower profitability than the second half of the year. Compared to our medium-term target, it will stay on a 5%. Yeah. Yes. The second quarter is seasonally low on cash. We still managed to improve our adjusted operating cash flow. Adjusted operating cash flow for the second quarter was SEK 20 million. Cash flow from the operating activities were SEK -24 million. This is slightly better than last year, even if we are growing with the revenue by 23%. Debt here, debt carries the revolving credit facility and the leasing. All the leasing is connected to existing customer contracts, and we are not expecting to increase the leasing in connection to this operational season. When we are looking at the historical data here, we can see that the summer period is lower than the winter period. Variable extra works, like I have already mentioned, those will be invoiced after the job is completed, and this has a negative effect for the cash for the summer period. I was going to say something about market entry barriers. Just understanding how our line of business works when you are having state and municipality clients. Yeah. Of course, needless to say, we are working in an environment that requires a lot of safety, so safety is always top of mind. We need quality because what we do has such great effect on society. So everything comes together when we do a lot of work like we do in the summer period. We also need a lot of documentation. We need a lot of underlying support or, yeah, simply documentation in order for us to secure that we have done the job properly. Using a lot of subcontractors, that is Terranor's model, and it is the model that we will stick with. It also means that from the time where we contract a subcontractor, the subcontractor does the job, they get paid, then we need to get all of the documentation in, we need to invoice. I am actually saying it can be better. It will be better. This is something that we constantly are working with. We're working with, of course, our largest clients in making this time period shorter. But it's also something that you need to adhere to when working with state and municipality. Having the seasonal effects on cash flow, looking at where we have been the recent years, this is kind of the normal. This is what we experience. We do not want the fluctuation to be this high, and we don't want the cash flow, all of it, basically, in the quarter four. But also, I just want to remind everybody that this is part of doing what we are doing. Nothing out of the ordinary, but definitely something that we have a high focus on. Yeah, absolutely. All right. Now, please. Then the segments. You can steal the slide if you want, but maybe I will start. Sweden with the revenue SEK 669 million, this is 32% of the growth. Adjusted EBITDA margin 3.2%, 1% up. This generated a bit more than SEK 10 million compared to prior year. The order backlog is on a record level. In Finland, SEK 160. Revenue is quite stable, and adjusted EBITDA is near break-even level. In Denmark, SEK 160 million with 13% of the growth, and with 2.9% adjusted EBITDA margin. Then it is your turn. Just giving some more perhaps operational flavor of-- Yeah, absolutely. What we are experiencing, and I will start with Denmark. Denmark. Denmark, if you remember, had a slow start in quarter one. Because it was affected by weather. Denmark had also winter, meaning that since a lot of our operations in Denmark are summer work based, we experienced low revenues, and we didn't get full cost coverage in first quarter. Now what we are experiencing, looking at the second quarter, I'm very happy to see that the activities has been picking up strong since March. You might remember that we started four new state contracts in 1st January, so very important for us to see that also activities, and not only activities, but also operations are trending in the right direction in those four contracts. Last but not least, for Denmark, we see high tender activities. We were able to win two municipality contracts, and I think understanding Denmark is also understanding the adjacent markets outside the state contracts. Because we hold, as of now, four out of five summer contracts in Denmark, but there is a lot of tender activity in the municipality market. It is tender activities when it comes to harbors, when it comes to defense, so a lot of contracts that are outside the state. That is also driving growth. Denmark is picking up, which is perfectly according to plan, but also very strong and good to see following a quarter one that perhaps were a little bit lower than expected. Coming into Finland, when we talk about higher demands in Sweden and Denmark and more funding coming in, I am not saying that the demand is lacking in Finland, but I am simply saying that the volumes of extra work in swellings, we do not experience it to that extent in Finland. Especially not in the state contracts. Finland, at least our business now, is driven more towards municipalities. I have talked before about the cost pressure or the price pressure that we experience in the state contracts in the tender season, which ultimately drives us towards the municipalities. So winning municipality contracts that we did in Finland is, of course, totally according to our strategy. Talking about Finland, one needs to give an update on the claims discussion. We are in discussions with our largest client regarding the nine historic contracts where we feel that we should be given additional compensation for the early years that especially was highly affected by the Ukraine war. We are in communication, and I believe that both parties, the way I see it, are in favor of an amicable solution, a friendly solution. Obviously, Terranor being a large contractor in this line of business, being the only solely specialized. I think, my opinion, that is also accredited by our customer, our largest client, that they also see the need of a contractor like Terranor that supports the friendly solution. But unfortunately, no decisive decisions in this quarter. We will obviously keep everybody updated on any progress, but it will take some further time. So, no news on that for Finland. Then, coming to Sweden. Yes, increased volumes across the state contracts, but also in Sweden, higher demands from municipalities. We were able to win two contracts, Falun and Borås. Looking at what the activities that we are doing now in the tender department, I see a lot of municipalities piling up. A combination of, if you might remember, the Terranor strategy, we always target the state contracts first. Looking at how we are situated now with the state contracts, we have presence throughout Sweden. So that foothold throughout the geography of Sweden makes a very strong position to target all municipalities. All right, there might be some blind spots, but most of the municipalities that now are looking for our services, we can and we will target to also broaden and increase revenue streams. On top of that, local markets, wherever there is a need for something that is on the road or adjacent to the road, I think also, I know that we have proven ourselves to be the partner that you go to if you're looking for somebody that can provide a one-stop shop solution. We have talked a lot internally about being entrepreneurial, being solution-oriented, building a relationship, a long-term partnership. I think the magnitude of also us having a larger market platform enabling us to target adjacent markets and having the boost of having a lot of committed and really dedicated colleagues out, that is what we are experiencing now. It's not just only one, it's the combined picture of it that is driving this. And of course, Inka told you about it earlier, having the increase in profitability. This is not the quarter where we see the really high profitability, because like I mentioned, there are market entry barriers working with state and municipality. Looking historically, we do feel that the quarter three and quarter four will follow the trend that we have experienced in the first two quarters this year. So yes, on a good trajectory throughout the group, I would say. But driven predominantly of a very high demand in Sweden. Yes, looking at the financial targets, starting with the organic growth, you will see that we are well above, and you have heard both me and Inka now say that we really don't see this slowing down. For us now, it's very much about finding the right pace where we obviously follow the need and the demand from our clients, but we never risk profitability. First, I would say we never risk security or safety when it comes to the work that we are doing. So being safe, delivering quality, doing that, I would say that is the pace that we are looking for now. And I think we're in a good place. I feel confident that we are on the right trajectory. Yeah. Profitability-wise, like I said, this is not the quarter where we would expect the 5%. That will come with the increased swellings and extra work that we see coming in. So following the trend and building up quarter by quarter, outperforming last quarter, that is what we are aiming for. Dividend-wise, yes, we paid out SEK 1.5. Of course, I can only underline that going forward, we do not see a large investment need. The business model is very clear, and we will stick to it. We will use a lot of subcontractors. We will not build up the hefty balance sheet. We will not take on a lot of new debt. Yes, dividend going forward. Talking about debt and leverage, well, of course, doing very much more builds up contract assets. In this quarter, I think the combination of both starting new contracts, meaning we needed more machinery, we needed to rejuvenate some machines, and also building up working capital simply because we are doing so much more. That is the increase you are seeing from SEK 1.5 to SEK 1.97. I think obviously we have a strong headroom or a large headroom, up to SEK 2.5. We do not foresee, like Inka said, SEK 1.97 to increase over the year, so we also feel safe and secure. This is part of the business model. We are in a good place. Rounding it up, I would like to come back to where I started. We do not see the demand or need diminishing. We do not see that slowing down. I think it is apparent for everybody how crucial road safety, road networks are for society. The demand for roads to be open, functioning, operating on a 365 every day, is apparent. We now have increased funding for at least up until 2036 when it comes to Sweden. We see Denmark also investing more money. So this is not something that is slowing down. From that, I would definitely come back to pointing at Terranor being the only specialized company. I think that we are in a very favorable position, supported by a strong track record, but also supported by the level of partnership that we deliver on a daily basis toward our largest client, and that is done by our colleagues out in the field every day. The growth and the increased profitability would not have existed without their commitment. Also I would say, being specialized, if you want to do good for society work and work with road operations, Terranor is the obvious place to come to. I also see that we have, for quite some time now, been able to attract and retain the talents and the really committed people. I cannot underline that enough, that it starts and ends there. Entrepreneurial culture. We talk about it every day, but being the can-do, I would probably say being the natural go-to, but also the partner that can handle all of the needs, that is something we talk about every day, and I think that is something that makes us unique. It is also part of the legacy and something that we will work even more with going forward. I think, yes, Markus, to round it up, you said a strong quarter again. We feel the same, but then again, it is tedious work, it is everyday work, and I cannot compliment our colleagues enough for doing it. So, thank you all for listening in, and thanks to all our colleagues that makes it possible. And maybe starting out by, obviously the growth and what we are seeing, because you also say here that obviously you had the new contract coming into place, but you also have a significantly higher activity across the portfolio, you say. Talk a little bit about this and maybe if it is a pace that you see increasing or if it is just high. It is high, but it is continuously high. It is driven by demands, and it is demands across the board. I will put some more wording into it. Safety, so road safety barriers in the middle of the road, animal fences, dewatering, making, even if we have flood rains, we need to get the water off the surface, meaning that we need to replace under-dimensioned drainage wells. All of that work has to be done in the summertime. Looking at the bearing structure of the roads with a lot more electrical vehicles that obviously are heavier than before, the logistic sector that is driving so much more, and not to forget, defense. A lot of the road structure needs to be enforced to the very core of it. All of these services we can attend to. Being specialized, coming back to it again, we are the go-to when it comes to everything that needs to be done on or the side of the road. It is really across the board, and we cannot simply say that we are experiencing higher demands in the urban contracts like in Gothenburg or here in Stockholm. It is across the board. We see it in the rural contracts, as well as in the urban contracts in the countryside. Yeah. Again, I will be a little bit bold here now, and I would say you could probably do our line of work differently. You can do it by tendering in a way that you set out to do as little as possible, just preserving cost. That has never been the Terranor model. We have always tendered in a way that we want to do activities on the road. We want to present all of the improvements, all of the things that we see, because ultimately we probably know the roads at least as good as our clients because we travel on them every day doing inspection routes. I think that can-do mentality and the entrepreneurial culture is a big driver in this. Of course, the ability to do the work with quality. Otherwise, we wouldn't be in this. Maybe asking the question in a different way. The increased funding that we are seeing, the SEK 1.1 billion that you mentioned in the presentation. That is from 2026 to 2037, I think, the increase. How much of the increased activities you are seeing is from that pot? That is, are we seeing that fully ramped up? Is it going to increase over time? What is the status of that extra money coming in, and how is that affecting you right now? Not taking a guess here, but rather using facts. I would say that this started early as 2024, the ramp-up of more funds. It started with our largest client, Trafikverket, being very outspoken. You can read their own reports, their own documentation from a couple of years back, where they are highlighting this. Of course, Trafikverket was the big driver behind getting politicians on board and granting the additional funds. We have seen this going on. My answer would be, looking at the increased growth, our growth rate, but also the increased demand from starting from 2024, 2025, following that trajectory, that is the proof, I would say. If you ask me the outlook for this year, next year, I do not see it declining. I do not see how it could decline because the demands, the shape the roads are in, well, it is what it is. Our largest client, Trafikverket, now has additional funds. It is very much up to us to also be able to provide the services that allows ultimately the funds to be put in place where it makes difference. I think that is what we are experiencing. From that, moving over to municipalities, I would say the situation is basically the same. It is not that municipalities have spent a lot more, relatively seen, more money into roads than the state has. The demand also on the municipality side is equally high. Of course, municipalities, to some extent, are struggling with economy and finance in a little different way than the state has, because the state has been allowed more funding. We see higher activity in what we call local markets. I would say that it is due to underspending for decades. Again, it is very much due to colleagues that are out there seeing opportunities, being business-oriented, and building the confidence that Terranor is the provider, the one provider for these services. I think that is the combination. Given that what you are mentioning right now, looking at Sweden being the biggest market, given that the state of the roads is what it is, we have an election coming up that is not going to, in your view, going to change anything, right? It is just going to be this continues. Hard to know, but the way you see it. Yeah, it is hard to know. Writing promises that I do not, can or account for. But it was politically unanimous, the decision that was made. I think there is, across the board, a big unity of we need to fix the roads once and for all. Again, coming back to how critical for society, going to work, the ambulances, fire department, all of the crucial for society in using roads. We cannot simply, as a society, function without better roads. I think it's inevitable. This is a road we need to go down to, and I think we are well-positioned, again, being humble. It's a day-to-day work, but for quite some time, we are well-positioned. And maybe staying with the municipalities a bit, because you mentioned municipalities a number of times now during the presentation. I think the mentioning of the municipalities through time has also increased quite a lot. Does that mean that your strategy has shifted a bit, that you're focusing more on municipalities? Is the focus going to increase even further? How do you look upon this, and how big a part of growth strategy is this? A couple of things. The strategy will always be state contracts. We've had, and we will still have, a strategy of tendering on all state contracts. That will continue. But like I said, with the foothold we have now from the state contracts, it enables us to also target the municipalities. What we get from municipalities is, of course, alternative revenue streams, meaning that we are not dependent on solely a state contract in one region if we also have municipality contracts. So that gives us strength, and it gives us sustainability over time for building up organization and remaining in that market. Secondly, I would say higher utilization, because having both the state and the municipality gives us better utilization for both equipment, but also colleagues. The lessons that we have experienced from places where we are really strong, like we talked about Gothenburg. We have the municipality contracts in Gothenburg, as well as the adjacent state contracts. What we are experiencing is the joint knowledge and the higher quality that we can bring by focusing in these areas, I think that is something that we are really strongly targeting. Thirdly, one might forget about the private market, since state and municipality is that high. But when we have state and municipality, we also naturally become the go-to point when it comes to road operations and maintenance, meaning that we also build up the market presence that allows us for basically handling everything also on the private side. You mentioned that, the private, because the private side is actually increasing quite a lot in the quarter. Is there any one-offs in that, or is it a trend that we should expect to continue? Or is it just following on from the strength you are seeing elsewhere? It is a good question, because we always talked about Terranor being focused state and municipality, and we will continue being that. But like I said, when we have a strong presence in the market, like we are now when we are taking on more municipalities, also having the state, that is when one plus one becomes three, because we also do a lot more of the local markets. I will really not want to come off as this being simple, because having the growth rates that we are experiencing now, it takes a lot from our colleagues. Again, coming back to the mindset and the culture within the company, to me, that is the core essence. Of course, market, we wouldn't be able to do this without having the market drivers, but the combination with the mindset of our colleagues, that is what's really driving it now. Maybe let's talk a little bit about the profitability as well. You saw a nice increase in the margin. We talked about the new contracts, and you have higher sales, and of course, this drives profitability as well. Are there any other factors impacting the margin increase? Again, coming back, higher utilization. We do more now, higher activity across the board on our existing organization. This is something we need to be very careful about, because we need to be able to I know the number of employees we have taken on this year, and it's finding the right balance where we grow, but never jeopardize safety, quality, all of the things that ultimately is the foundation of Terranor. But at the position we are right now, starting with the state contracts, you heard me talk about when it comes to the tenders, and you've done a very strong analysis of it. We do not see prices going down in general. Some contracts, we have one-offs, but in general, prices are increasing in the state contracts. On top of that, the need or the additional funding for our state client, and the additional need comes in the shape and form of the things we do in the summertime. That is when you can support safety, when you can support the bearing structures or the dewatering. It has to be done by swellings in the contracts, by simply doing more, or by doing extra work. It is completely natural that we have a different margin on those type of works. It follows the strategy so far. Okay. There are some questions about the sale of PP&E in the quarter, the SEK 17 million. Maybe first of all, the first question is, are there any P&L effects by this sale, so SEK 17 million? It is one of the questions. No, there was not. We sold the trucks and the equipment in one of our entities in Sweden. But there was no P&L effect. No P&L effect. Out of that. Just the cash flow. Yeah. And on that, because it's Norvia, right? The subsidiary that we talked about before. Yeah. Is Norvia all done now, or is it behind us, or are there going to be spillover effects in H2 as well? In our opinion, Norvia is all done when it is up and producing profitability and growth that supports the overall target for the group. We are not there yet, but for anybody who has been listening in before, we talked about Norvia and the need we have had to downsize it in order to create control and sustainable growth going forward. So that is what we have done for the last two quarters. I think that we are in a good position now to actually start delivering profits and making it a strong trucking company. So I feel confident that we have done the right things. It took a little bit longer, and yes, we could not sell off trucks and downsize the company as fast as we might have wanted. But nevertheless, we are in a good position now, and I feel confident that we have the organization that is also the right one to take this into the future. So the short answer, not quite there yet, but we are on a good trend. Then maybe lastly, on the cash flow. You saw negative cash flow in the quarter, the working capital buildup that we talked about. I assume that there is nothing that says that we are not going to see the normal seasonal pattern. That is, Q3 is going to be weak as well. Because you are going to see the same kind of pattern, then you are going to get it all back in the fourth quarter. There is nothing special going on here that we should be aware of. No. No. Absolutely no. Totally normal. This is according to plan. If we are coming to the end now, if I were to underline something, it is about always looking at Terranor over four quarters, over year-to-year. Always looking at quarter-to-quarter, because it is so heavily seasonally affected that it makes no sense looking at quarter four in comparison to quarter two. We have a very clear business model. What we are experiencing now is following, actually superseding, that business plan. I think that is the key takeaway here. We are on the right track, and we are confident that the long-term targets, SEK 5 billion and 5%, is within reach. With that, Michael, Inka, thank you very much for coming here. Thank you. And thank you v ery much for listening. Thank you. Thank you.